BEST ARTICLE OF CULTURE AND ENTERTAINMENT ECONOMY

INTRODUCTION

The culture and entertainment economy refers to the sector of the economy that comprises industries and activities related to cultural and entertainment products, services and expenses. This sector plays a significant role in shaping society, promoting creativity and contributing to economic growth. This implies embracing the tradition of a country or groups rich industry and making it accessible to and engaging  the world.

The culture and entertainment economy not only provides entertainment and artistic experiences but also generates significant economic activity and employment. It contributes to revenue through ticket sales, merchandise, licensing, advertising and sponsorship, it also drives tourism, stimulates local business and supports related industries; such as hospitality, retail and transportation.

The culture and entertainment economy includes but not limited to the following:

Film, Television and Photography.

Arts, Dancing, Drawing Painting and Crafts.

Music and Singing

Poetry

Pottery and Ceramics

Wood working

Games

Comedy/Theatre/Cinema/Performing Arts/Literature and Sports

Tourism and Hospitality 

Cultural Events and Festivals

Infrastructural Development, collaborations & partners.

Educational training and Digital presence.

WAY FORWARD

The biggest entertainment industry in Nigeria is Nollywood which is the second most prolific film industry in the world, with an annual output of around 2,500 movies. The Nigeria Film Corporation should be encouraged to work closely with directors and producers to offer incentives and support for film and media production to shoot films, documentaries and TV shows in the country.

According to PWC Global Entertainment and Media Outlook For 2022 – 2026, Nigeria’s media and entertainment industry is one of the fastest growing creative industries in the world. It has the potential to become one of the country’s exports with projected annual consumer growth rate of 8.8% in 2021. In 2021, the Nigerian film industry contributed 2.3% (239 billion naira) to the GDP. The motion picture and music combined contributed about 730 billion naira to the country’s GDP in 2020.

Local talents should be supported and provided with the opportunity to showcase their talents. Attractions such as historical sites, museums, festivals and performances can attract tourists worldwide. Places like the Obudu cattle ranch and Ado-Awaye suspended lake in Oyo State which is the second of its kind in the world should be given priority by the Federal Government.

The music industry’s stakeholders include but not limited to artists, musicians, producers, promoters, managers, distributors and marketers.

As at 2021, the music industry employed about a million people and generated over 8 billion dollars for the Nigerian economy. Artists like Davido, Burna Boy and Wizkid have done Nigeria proud globally which encourages digital platforms like Spotify the global leader in music streaming to move into the Nigerian market as part of a broader global expansion.

At the global level, Fela Anikulapo Kuti, the late Afro beat creator is perhaps the most iconic musician to have come out of Nigeria, until recently when Damini Ebunoluwa (Burna Boy) won the best International Act at the 2019 BET Awards. He recently repeated the feat this year when another Nigeria singer Ayra Starr was also nominated. Similarly, top Nigerian Artist Davido album titled “TIMELESS” has featured over 10 million user generated playlist on Spotify. Also, the Album had over 12 million streams in 24 hours, this was the first time an Album would achieve such a feat.

The National Council of Arts and Culture should be strengthened to organize and promote cultural festivals, concerts and exhibition, theatre performance and other events that showcase the country’s traditions, arts and entertainment.

The Federal Government has to invest massively in the development of cultural and entertainment infrastructure such as theaters, concert halls, art galleries and museum. The National Theatre in Iganmu, Lagos State is a shadow of its self. Cultural exchanges and collaborations with international cultural institutions should be encouraged. The National Institute of Culture and Orientation should be strengthened to develop programs and training workshops that focus on cultural arts, entertainment and creative industries.

Another fundamental issue to be addressed if our tourism and entertainment is to attain its potential is the enactment of suitable laws and reviewing of existing archaic ones.

OPPORTUINITIES

 Business opportunities in the Nollywood industry includes Cinemas in undeserved areas, digital distributions, training and capacity building for cinematography, script-writing, directing and movie production equipment.

U.S origin equipment is generally considered superior to imports from other countries. Local entrepreneurs seek opportunities to represent and work with U.S suppliers of computer parts for local assembly. Nigerian importers and end users prefers suppliers who in addition to prompt delivery of products, can provide timely after sales support, including spare parts at competitive prices.

Significant opportunities for U.S companies in this sector include:

Establishment of training facilities which engage in animations,

Visual effect and other technical skill development.

Social media collaborations with local short film and content creators.

Improving penetration of contents and digitization of media.

Establishment of consultancy services for expanding reach and improving penetration of content and digitization of media.

Establishment of a distribution and rental business for new technology useful for production by industry participants.

Video streaming platforms with exportable content.

Mergers and acquisition of national players who require financial assistance and other resources to leverage growth.

Collaboration with global film producers to film festivals and media tourism.

CHALLENGES

The Nigerian culture and entertainment economy is no doubt bedeviled with numerous challenges which include but not limited to:

COPYRIGHT PIRACY: The Nigerian copyright commission (NCC) and the National Films and Video Censors Board (NFVCB) has a huge role to play to stem this trend.

COVID-19: This caused lockdown of business premises and led to the downsize of workers of this sector by employers. A lot of business collapsed totally in the aftermath of the lockdown.

POOR INFRASTRUCTURE: Poor electricity supply and poor roads.

NIARA DEVALUATION AND VALUE ADDED TAX (VAT)

RECOMMENDATION / CONCLUSION

Increased funding of the MDA’s involved with the Nigerian culture and entertainment industry. For example in 2014, the Entertainment and Creative Services Department was created by the Head of civil service out of the old Department of Culture. This department is dedicated to the entertainment and creative sector in Nigeria. This department seems not to be living up to expectations and therefore needs to be strengthened and well funded.

There must be a deliberate effort towards improving this sector by the government through creating and implementing favorable policies aimed at its growth in tandem with best global practices. The Creative Industry Financing Initiative was a step in the right direction in achieving creativity. The Central Bank of Nigeria with Bankers’ committee developed a loan scheme called Creative Industry Financing Initiative (CIFI), it has four pillars of Fashion, Music, Film and Information technology. Under this initiative, film production business can get up to 30 million naira while film distribution can get up to 500 million naira and repayment is over a period of 3 to 10 years with interest rate of 9% per annul. The implementation of this initiative should be reviewed with a view to putting into consideration the prevailing economic circumstances, and the whole process properly evaluated to ensure the initiative achieve its aims and objectives.

Tax Incentives; the federal government should endeavor to grant tax incentives like waivers etc to entrepreneurs in this sector.

The Federal Government should seriously think of borrowing the Saudi Arabian Government’s initiative of creating authorities akin to the General Entertainment Authority which was created in line with the Saudi Vision 2030, with mandate to regulate and develop the entertainment sector by providing inclusive world class entertainment offerings that would drive the industry to proactively contribute to the fulfillment of national goals of a vibrant society and thriving economy. The GEA has impacted tremendously on the Saudi Arabian economy over the past 5 years by issuing 2,189 new licenses, involving about 2,500 businesses, granting of about 1,809 new permits, generating over 1 billion dollars in revenue, having over 75 million events attendees and over twenty six thousand days of events.

By and large the culture and entertainment economy is a dynamic and multifaceted sector that not only provides entertainment and cultural enrichment but also contributes immensely to economic development and employment opportunities. It is therefore, imperative for the Federal Government to take as priority, the strengthening of the culture and entertainment sector in partnership with the private sector.

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